When you’re renting out a property in Charleston, you know it’s important to keep your own insurance coverage up to date. Having a comprehensive policy in place will protect you against unexpected disasters and potential liability.
But, what about your tenants? Are they covered? They’re living in the home and creating their own potential risks. They also own their own property inside that home. What will cover their electronics and their furniture if those things are damaged or stolen?
Renter’s insurance is a must. It’s not expensive for your residents and it can increase the amount of protection your investment property has.
Here’s what you need to know about renter’s insurance and why it’s so important for your Charleston tenants and your rental property.
Why Is Renter’s Insurance Necessary?
Renter’s insurance will usually include liability coverage, protection for a tenant’s personal belongings, and sometimes coverage for additional living expenses in case the rental property becomes temporarily uninhabitable.
It’s hard to prepare for the worst case scenario, and tenants often expect that your insurance will cover them during any loss. But accidents can happen, and if there’s damage done to a renter’s possessions, or if someone gets hurt while they’re visiting your tenant, a renter’s insurance policy will reduce a tenant’s overall risk and financial exposure. It will also protect you and keep your own policy from being the first place you turn to make repairs and replacements.
This type of coverage applies to all renters, whether they’re leasing a single-family home or a unit in an apartment building.
What Kind of Coverage is Provided?
How can you let your tenants know that a renter’s insurance policy is in their best interests? Here’s what it will cover:
- The most important reason that tenants should agree to buy their own renter’s insurance is that there is coverage for their personal property.
If there’s a plumbing disaster and a pipe leaks to the point that the house floods, furniture may be damaged. If a window breaks and smashes through a television set, the renter’s insurance policy will cover the cost to replace or repair those items. Your landlord’s insurance policy will not cover those items. Under a landlord policy, liability and the structure of the home is covered; a tenant’s personal property is not.
- The renter’s policy will also cover liability. If a tenant accidentally leaves a stove on and starts a fire, the renter’s insurance will cover the repairs that are necessary. This will save the tenant from a lot of out-of-pocket expenses, protect his or her security deposit, and provide some relief to the landlord.
Renter’s Insurance is Affordable
Put the renter’s insurance requirement in your lease agreement so your tenants know you expect them to have it before they move in. If they push back or question this, assure them it’s affordable. They won’t spend more than $15 or $20 per month, especially if they can bundle the coverage with their auto insurance.
You can also be added to your tenant’s policy as an additional insured. This will give you access to information about the policy; you’ll know when it’s canceled or renewed.
Renter’s insurance is critical to both tenants and landlords. If you’d like to hear more about how we handle all of the necessary insurance with the properties we manage, please contact us at Charleston Home Rentals.